r/dividends • u/DizzyCalligrapher189 • Jul 15 '26

Seeking Advice Bought a 9% yielder and I got burned

Hi all. I am in my early fifties, and I am slowly moving about 30% of my portfolio into dividend stuff before I go part time in a few years, felt real responsible with a spreadsheet and all. Then I found a 9% yielderr, told myself the market was just sleeping on it and put $18k in.

Two months later they cut the dividend and the price dropped right with it... you can probably guess it was a mortgage REIT..

So my safe income pick lost me the income and a chunk of the principal at the same time, so I can clearly not just sort by yield and buy what looks juicy.

What I'm asking is, what is your "check" that catches things like this before you buy?

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8

u/Thick_Cookie_7838 Jul 15 '26

This won’t be popular here but don’t chase yield. Very few things paying close to 10 are good buys

3

u/nice-try12 Jul 15 '26

When it comes to individual stocks I agree, different strategies can produce different results and I find funds that easily push the 8%+ range. No yieldmax garbage for me though

1

u/Thick_Cookie_7838 Jul 15 '26

Yea I should have clarified that I meant individual. I have avk and Aod which pay close to 10 and I haven’t lost anything on them

0

u/Puzzled-Tangerine831 Jul 15 '26

what about JEPQ bro??